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Consider the following abbreviated financial statements for Parrothead Enterpris

ID: 2814115 • Letter: C

Question

Consider the following abbreviated financial statements for Parrothead Enterprises:

PARROTHEAD ENTERPRISES

PARROTHEAD ENTERPRISES

2014 and 2015 Partial Balance Sheets

2015 Income Statement

Assets

Liabilities & Owners’ Equity

Sales

12589

2015

2014

2015

2014

Costs

5265

Current assets

916

945

Current liabilities

396

463

Depreciation

1098

Net fixed assets

3958

4438

Long-term debt

2077

2205

Interest

177

In 2015, Parrothead Enterprises purchased $1083 in new fixed assets. How much in fixed assets did Parrothead Enterprises sell?

PARROTHEAD ENTERPRISES

PARROTHEAD ENTERPRISES

2014 and 2015 Partial Balance Sheets

2015 Income Statement

Assets

Liabilities & Owners’ Equity

Sales

12589

2015

2014

2015

2014

Costs

5265

Current assets

916

945

Current liabilities

396

463

Depreciation

1098

Net fixed assets

3958

4438

Long-term debt

2077

2205

Interest

177

Explanation / Answer

Solution :

Statement showing sale value of Fixed Assets of Parrot head Enterprises during 2015

Thus, the sale value of Fixed Assets of Parrothead Enterpries for the year 2015 is $ 465.

Sl.No. Particulars Amount in $ 1. Beginning value of Fixed Assets (2015) 4438 2. Add: Capital Expenditure (Purchase of Fixed Assets in 2015) 1083 3. Less : Depreciation -1098 4. Less : Closing value of Fixed Assets ( 2015) -3958 5. Sale value of Fixed Assets in year 2015 465
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